SAATCHI & Saatchi is in the black for the first time since 1988, but

the outlook remains dull and the payment of a dividend even next year is

in doubt.

Last year the group made profits of #19.2m against losses totalling

#595m, made up of massive restructuring costs. Underlying revenue growth

was flat though currency movements increased the reported figure.

Turnover came to #813m, up 9%.

Saatchi's balance sheet is in better shape, with debt down from #194m

to #112m. Deferred consideration for past acquisitions, which has been

such a drain in recent years, is down to #10m, spread between now and

1999.

Further redundancies and other cost-cutting will benefit 1994 but the

real key to raising profits is more revenue and here chief executive

Charles Scott is not confident, actually expecting a decline following

the loss of two major accounts. A new boss has been appointed to the

American business with a brief to reinvigorate it. The US market is

particularly important given its size and its location as the home of

most multinationals. Heads will roll if more accounts are not won.

''There are no doubts in my mind that my career in this company is

limited if revenues don't rise,'' Mr Scott stated.

Four-fifths of revenue comes from the advertising agencies, Saatchi &

Saatchi Advertising Worldwide and Backer Spielvogel Bates.